SunPower Slips: Q2 EPS Beats, Cuts Year GAAP Rev View

By Tiernan Ray

Shares of solar energy technology provider SunPower (SPWR) are down 54 cents, or 2%, at $27.11, in late trading after the company this afternoon reportedQ2 revenue a tad lighter than analysts’ estimates, but beat on the bottom line, forecast this quarter below consensus, and cut its year revenue view while holding its profit projection steady given an expectation for higher profit margin than previously thought.

Shares of competitor First Solar (FSLR) are up 6 cents at $49.28 in late trading, while shares of Solar City (SCTY) are up 12 cents at $41.47.

Revenue in the three months ended in June fell 3% to $576.5 million and 15 cents EPS.

On a non-GAAP basis, the company turned in $650 million and 48 cents per share versus its projected $550 million to $600 million and 5 cents to 15 cents.

Analysts, on average, had been modeling GAAP results of $577 million and 10 cents a share.

CEO Tom Werner called the results “strong,” and remarked there was demand “across all major geographies.”

Our North American business continues to be the cornerstone of our success as we completed panel installation at the California Valley Solar Ranch (CVSR) with full project completion expected by year end. Construction of the 579-megawatt (MW) Solar Star Projects for MidAmerican Solar continues. Additionally, we strengthened our position as the leader in the commercial market booking $100 million in commercial projects in the second quarter. In the residential business, demand continues to be solid with $150 million in new lease capacity financing, SunPower is well positioned for success in the second half of the year. For the current quarter, the company sees revenue in a range of $575 million to $625 million, and net income of 10 cents to 30 cents. Analysts have been modeling $699 million and 19 cents […] In APAC, demand in the Japanese market continued to be strong as evidenced by our fourth quarter of record shipments. Our success inJapan reflects that our industry leading technology, reliability and quality remain distinct competitive advantages in this market. Finally, we are seeing a turnaround in our European business as we recorded our third straight quarter of financial improvement. With demand trends improving and stabilization in both industry conditions and pricing, we remain confident in our ability to achieve profitability in the EMEA region by the end of 2013.

For the current quarter, the company sees revenue on a GAAP basis of $575 million to $625 million, and EPS of 10 cents to 30 cents. That is up from a prior forecast of $540 million to $590 million and a prior projected net loss of 15 cents to 25 cents.

The Street is modeling $699 million and 19 cents.

On a non-GAAP basis, the company sees $550 million to $600 million and EPS of 15 cents to 35 cents. That is up from the prior EPS forecast of 5 cents to 15 cents given a higher expected gross margin.

For the full year, the company sees GAAP revenue in a range of $2.45 billion to $2.55 billion, and EPS ranging from a net loss of 5 cents to a profit of 20 cents. That is down from the prior GAAP revenue forecast of $2.6 billion to $2.7 billion.

The Street is modeling $2.63 billion and 73 cents.

On a non-GAAP basis, the company reiterated a revenue outlook of $2.5 billion to $2.6 billion, but raised its forecast for EPS to $1 to $1.30 per share from a prior 60 cents to 80 cents after raising its gross margin outlook.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.